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CISI ICWIM Exam Syllabus Topics:

SectionWeightObjectives
Regulation and Ethics15%- Regulatory framework
  • 1. Compliance requirements
  • 2. Financial regulation principles
  • 3. Investor protection
- Ethical conduct
  • 1. Professional responsibilities
  • 2. CISI Code of Ethics
  • 3. Conflict of interest
Client Advisory25%- Client needs analysis
  • 1. Risk profiling and suitability
  • 2. Investment objectives
  • 3. Time horizons
- Portfolio construction
  • 1. Portfolio review and rebalancing
  • 2. Asset allocation strategies
  • 3. Performance measurement
Financial Products20%- Equities and shares
  • 1. Dividends and total return
  • 2. Types of equity
  • 3. Valuation methods
- Bonds and fixed income
  • 1. Credit risk
  • 2. Yield and price relationships
  • 3. Bond types and characteristics
- Collective investments
  • 1. Fund selection criteria
  • 2. Funds and structured products
  • 3. ETFs and index trackers
Risk and Return20%- Risk concepts
  • 1. Types of investment risk
  • 2. Risk measurement
  • 3. Risk diversification
- Portfolio theory
  • 1. Modern portfolio theory
  • 2. Risk-return profiling
  • 3. Asset allocation principles
Market Environment20%- Role and function of financial markets
  • 1. Market indices and benchmarks
  • 2. Market participants and intermediaries
  • 3. Types of financial markets and their roles
- Economic environment
  • 1. Business cycles
  • 2. Macroeconomic factors affecting investments
  • 3. Interest rates and inflation

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CISI International Certificate in Wealth & Investment Management Sample Questions (Q179-Q184):

NEW QUESTION # 179
Which one of the following is true of fundamental analysis? It seeks to establish:

Answer: D

Explanation:
Fundamental analysis involves evaluating a security to determine its intrinsic value by examining factors such as financial statements, economic conditions, and industry trends. The goal is to identify whether the security is undervalued or overvalued compared to its current market price.
Reference:
ICWIM, Topic: Equity Analysis and Investment Decision Making.
Benjamin Graham's "The Intelligent Investor" on intrinsic value.


NEW QUESTION # 180
What term describes the process that enables savings institutions to transform into banks?

Answer: B

Explanation:
Demutualisation refers to the process by which a mutual savings institution, such as a building society, converts into a publicly traded company or bank. This transformation allows the institution to raise capital through equity issuance and expand its services beyond mutual members.
Example:
* The Abbey National Building Society in the UK demutualised in the 1980s to become a bank.


NEW QUESTION # 181
The ongoing charges figure for a mutual fund should be included in its:

Answer: A

Explanation:
The ongoing charges figure (OCF) of a mutual fund is included in its Key Investor Information Document (KIID). The KIID provides standardized and essential information about a fund's costs, risks, and performance, ensuring transparency for investors.
Reference:
ICWIM, Topic: Fund Documentation and Regulatory Requirements.
EU UCITS Directive: Requirement for KIIDs.


NEW QUESTION # 182
It is impossible to diversify against:

Answer: D

Explanation:
Diversification reduces risk by combining assets whose returns are not perfectly correlated. This is effective for risks that are specific to an individual issuer, sector, or instrument because negative outcomes in one holding may be offset by better outcomes elsewhere. Credit risk can be diversified by spreading exposure across many issuers, sectors, credit qualities, and maturities, reducing the impact of any single default.
Currency risk can be diversified by holding multiple currencies, and it can also be managed through hedging, although it cannot be removed entirely if foreign exposure remains. Liquidity risk can be reduced by holding a mix of liquid assets and by avoiding concentration in instruments that may be hard to sell, although periods of market stress can still reduce liquidity broadly. Market risk, also called systematic risk, is different: it reflects economy-wide and market-wide forces such as recessions, broad interest-rate shifts, and systemic shocks that affect most risky assets at the same time. Because it is common to the whole market, it cannot be eliminated through diversification, only managed through asset allocation, hedging, or reducing overall risk exposure.


NEW QUESTION # 183
Which of the following is categorised as a soft commodity?

Answer: B

Explanation:
Soft commodities are generally agricultural or cultivated products, or those that are grown and harvested, rather than extracted from the ground. They often include food and fibre products and other renewable resources. Lumber fits this definition because it is produced from trees grown over time and then harvested and processed. Copper is a hard commodity because it is a mined metal. Oil and natural gas are also hard commodities, specifically energy commodities, because they are extracted. CISI-style questions commonly test the distinction between soft commodities and hard commodities, with soft commodities associated with agriculture and renewables and hard commodities associated with metals and energy. The classification matters because supply drivers differ: soft commodities are influenced by weather, planting cycles, disease, storage, and seasonality, while hard commodities are influenced by extraction capacity, reserves, geopolitics, and refinery or production constraints. Among the options provided, lumber is the only soft commodity.


NEW QUESTION # 184
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